AtlasFX completes the forex risk management lifecycle with FX Accounting
FX risk managers and /or Treasury teams know that FX Accounting is a box that needs to be checked. AtlasFX has that activity covered, and we do not overcharge for something that is not overly complicated.
Getting the FX accounting right -
With numerous ways to hedge various FX exposures, there is one thing they all have in common: They all require the treasury teams to get the FX accounting right. As the industry’s only end-to-end FX risk management solution, AtlasFX checks the accounting box in a cost-effective manner and provides:
- Mark-to-Market calculations for all the FX hedges.
- Hedge Accounting GL entries, documentation and testing.
- Consulting Expertise for complex accounting problems.
As FX hedging programs get bigger over the years, calculating the mark-to-market on the Treasury team’s FX contracts each month often becomes a huge burden to manage internally. However, many third-party vendors overcharge for this service. Due to our comprehensive end-to-end approach to FX risk management, AtlasFX will already have the information required to perform the FX mark-to-market calculations. Therefore, adding this functionality to our configurable FX solution is straight-forward and most importantly makes it very cost and resource effective.
Since the introduction of Accounting Standards Update [ASU] 2017-12 and International Financial Reporting Standards 9 [IFRS] a few years ago, Treasury teams have had the option of making their FX hedge accounting less rigid and burdensome. While some have taken advantage of this, others have stayed with the approaches that they had established before these rule changes, which includes overpaying hedge accounting vendors. With Treasury budgets under increased scrutiny, it is an ideal time for FX risk managers to re-evaluate their existing solution. Adding the hedge accounting functionality to the configurable AtlasFX risk management solution can save those precious budget dollars.
To better understand the implications of various accounting rate setting environments and how to best manage them, read our white paper, “Time to Evaluate Your Accounting Rate Methodology”.
While some FX exposures are straight-forward, many can be very complex. Is your Treasury team having trouble dealing with embedded derivatives in contracts or currency risk-sharing clauses?
- Having trouble finding forex exposures that can receive hedge accounting treatment due to functional currency limitations?
- Looking to establish a monthly netting process, in-house bank or rebilling center?
- Trying to understand what FX derivative best offsets a complex FX exposure?
With decades of corporate FX experience, the AtlasFX team of experts knows how to deal with these issues. Why overpay for outside consultants or 3 rd party vendors when this service can be included with AtlasFX?